Summer in Staten Island is always special, and with the sun shining in our beautiful borough, I thought I would share with you my observations on the real estate trends so far this summer.
The market to date has been an interesting one, with record low-interest rates meaning that closings are occurring when the right mix of motivated sellers along with buyers—with realistic price expectations—meet, but not at the same pace as this time period in 2018. As a side note, most deals that go into contract eventually close. More on that here.
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In the first five months of 2019, there was a drop in closings to the tone of approximately 250 properties, equalling a 17% drop in closings compared to this time period last year.
Frank J. Rizzo of Cornerstone Realty said it best, “I wouldn’t call it a buyer’s market per se, but it is no longer a seller’s market. We consider it a value-driven market, where buyers will pay for value they find in a property and sellers who have realistic viewpoints of the inventory competition and trend lines are able to capture that built-in value as well.”
I see this when I speak with clients but have also noticed trends with areas such as small apartments with upscale facilities—such as URBY—moving faster, with a good amount of competition for properties that are priced correctly.
Another trend this summer that I’ve noticed is the oversupply of semi-attached homes in Staten Island. With the owners of the semi-attached homes looking to upgrade and upsize (or downsize) their homes due to their changing life circumstances; there appears to be a glut forming in the market of this style of dwelling, putting downward pressure on the pricing of this style of construction.
Staten Island’s housing stock is very diverse, and each segment or style of housing has its own ‘micro market’ of trends. When comparing the cost of housing in Staten Island to the other boroughs, Staten Island typically sits at the more affordable end of the market, which will always attract buyers.
On balance, the authorities on housing pricing are universally predicting general increases in housing prices in the coming years, but this doesn’t generally mean we will see an increased number of closings. For 2019, their estimates range from an appreciation in value of 2.8% to 4.7%.
For 2020 the same authorities on housing prices are predicting growth in the range of 2.8% to 3.5%, with similar price growth, predicted for 2021-22 of 2.5% to 3%.
If you’re a buyer, make calculated offers that represent value for your current financial position and intended use of the property. For sellers, if you need to sell now, get it on the market! There are buyers out there, but depending on the type of home you own, you may not have several buyers fighting over your property, so it is important to go into the transaction with a clear and realistic mindset, and a willingness to negotiate.
Best of luck out there in the market!
This information, based on New York law, was provided courtesy of The Law Office of Christopher J. Arrigali, P.C. It is intended to inform, not to advise. No one should try to interpret or apply any law without the assistance of legal counsel. Please click here for the full disclaimer.
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